BONIA.KL WACC - Weighted Average Cost of Capital
The WACC of Bonia Corporation Bhd (BONIA.KL) is 8.6%.
| Range | Selected | |
| Cost of equity | 8.5% - 14.8% | 11.65% |
| Tax rate | 21.5% - 22.8% | 22.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.3% - 10.9% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.69 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 14.8% |
| Tax rate | 21.5% | 22.8% |
| Debt/Equity ratio | 0.7 | 0.7 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.3% | 10.9% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BONIA.KL | Bonia Corporation Bhd | 0.7 | 0.26 | 0.17 |
| 1150.HK | Milan Station Holdings Ltd | 0.15 | 1.02 | 0.92 |
| 1470.HK | Prosper One International Holdings Company Ltd | 0.03 | 1.14 | 1.12 |
| 1942.HK | MOG Holdings Ltd | 0.21 | 1.43 | 1.23 |
| 592.HK | Bossini International Holdings Ltd | 0.49 | 1.31 | 0.95 |
| 7615.T | Kyoto Kimono Yuzen Co Ltd | 1.01 | 0.6 | 0.34 |
| CRG.KL | CRG Incorporated Sdn Bhd | 0.16 | 1.05 | 0.94 |
| F10.SI | F J Benjamin Holdings Ltd | 2.05 | 0.94 | 0.36 |
| MESB.KL | Mesb Bhd | 0.06 | 0.19 | 0.18 |
| PADINI.KL | Padini Holdings Berhad | 0.26 | 0.21 | 0.18 |
| Low | High | |
| Unlevered beta | 0.35 | 0.92 |
| Relevered beta | 0.54 | 1.42 |
| Adjusted relevered beta | 0.69 | 1.28 |
BONIA.KL's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for BONIA.KL:
cost_of_equity (11.65%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.69) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.